UAE’s National Bonds’ investments rise by 36% to Dhs11.89bn in 2021

Shari’a-compliant savings and investment company, National Bonds’ 2021 annual profits report has revealed that more UAE nationals and residents are embracing a culture of savings. The report highlighted an investments’ increase of 36 per cent over 2020 to reach Dhs11.8bn in 2021 to support this trend.

Findings showed that savers earned returns of up to 3.33 per cent on their savings; one of the highest in the region. Irrespective of the size of their savings, all National Bonds customers enjoyed healthy returns in 2021. Bond holders also won Dhs36.9m in draw prizes and received additional bonuses from the Mudarib’s (National Bonds) own funds, based on their invested amount, tenure and savings behaviour.

The company also reported an increase of 64 per cent in sales, attributing the growth to its savings programmes and services as well as the growing awareness of the benefits of saving amongst people. National Bonds’ digital savvy savers also increased by 62.4 per cent.

Khalifa Al Daboos, chairman of National Bonds, said: “National Bonds’ growth is a direct reflection of the shift in mindsets regarding the habit of saving. We are pleased to note that more and more people are going back to the roots of sound and low-risk savings to ensure their current and future financial security.

“Our key mission at National Bonds, is to relentlessly spread the culture of savings in line with our leadership’s vision, through catering to our customer’s evolving needs via innovative products and digital solutions.”

Mohammed Qasim Al Ali, group CEO of National Bonds, added: “As the global economy gathered pace in 2021, it is encouraging to see bondholders from all segments able to enjoy the benefits of healthy returns-on-investment with National Bonds.”

Highlights from the year’s performance

Long-term National Bonds savers, who have been with the company since 2006, saw a cumulative increase of nearly 64.11 per cent in their savings this year. The company also noted an increase of 17 per cent and 9 per cent, respectively, in its women and junior saver segments’ investments in 2021.

National Bonds also ‘created’ eight new millionaires in 2021, with Dhs36.9m and 16 luxury cars distributed as prizes.

Since its inception, the company has created 202 millionaires and distributed prizes worth more than Dhs695m.

Nearly 15 per cent of the savings at National Bonds in 2021 were made towards education which remains a key reason for parents and youth to save, as detailed in a survey conducted by National Bonds. Other top reasons include investment (17.6 per cent), retirement (16.8 per cent), buying a house (16 per cent), having an emergency fund (12.4 per cent), opening a business (9.3 per cent), travel (6.6 per cent), buying a car (3.4 per cent) and a wedding fund (2.6 per cent).